Very good layman real life explanation on: Why WTI Crude Oil traded at minus -$37

Imagine the following... You pay $500 today and commit to receiving an escort at your house in 15 days. Cos your wife is traveling. This is called a futures contract.

Unfortunately, lockdown came and your wife will be home for the next 60 days.

You do not want this woman to show up at your house at all and try to pass this futures contract to someone else.

Only you cannot sell this commitment because nobody can receive the escort at home anymore. Everyone is in full storage (their balls) with their wife.

To make matters worse, not even the pimp (Chicago Mercantile Exchange) has more room to receive the girls because his house is crowded with girls.

So you will pay anyone just to take the girl off your hands.

Do you now understand why oil has a negative price when the contract is delivered?

Calculation and table of estimated prices can be found at this link: https://goo.gl/cpYiBN

If calculating 14/5 to 20/5 cycle (Thursday to Wednesday - weekends are using Friday prices), the actual retail price for RON95 & RON97 should be RM1.31 and RM1.61 respectively (±1 sen).

If we follow the previous Automatic Pricing Mechanism and Sales Tax Act, the government is allowed to "tax" us higher by 60sen per litre for petrol products sold.

If we look at last week's RON95 price, the govt was taxing us an estimated of 12 sen/l. Thus I estimate that the fuel price this week would be RM1.43/l for RON95 and RM1.73/l for RON97.

Smaller tax is always good for users

Calculation and table of estimated prices can be found at this link: https://goo.gl/cpYiBN

If calculating 21/5 to 27/5 cycle (Thursday to Wednesday - weekends are using Friday prices), the actual retail price for RON95 & RON97 should be RM1.35 and RM1.65 respectively (±1 sen).

If we follow the previous Automatic Pricing Mechanism and Sales Tax Act, the government is allowed to "tax" us higher by 60sen per litre for petrol products sold.

If we look at last week's RON95 price, the govt was taxing us an estimated of 7 sen/l. Thus I estimate that the fuel price this week would be RM1.42/l for RON95 and RM1.72/l for RON97.

Might just be a simple rounding error. My estimate is always ±1 sen in the first place anyway.

Calculation and table of estimated prices can be found at this link: https://goo.gl/cpYiBN

If calculating 18/6 to 24/6 cycle (Thursday to Wednesday - weekends are using Friday prices), the actual retail price for RON95 & RON97 should be RM1.69 and RM1.99 respectively (±1 sen).

If we follow the previous Automatic Pricing Mechanism and Sales Tax Act, the government is allowed to "tax" us higher by 60sen per litre for petrol products sold.

Now, Malaysian seems happy petrol price increased under PN rule. None of Malaysian complaint but during PH time all like no future tomorrow. We thank you PN keep on increase petrol price.

Calculation and table of estimated prices can be found at this link: https://goo.gl/cpYiBN

If calculating 25/6 to 1/7 cycle (Thursday to Wednesday - weekends are using Friday prices), the actual retail price for RON95 & RON97 should be RM1.57 and RM1.87 respectively (±1 sen).

If we follow the previous Automatic Pricing Mechanism and Sales Tax Act, the government is allowed to "tax" us higher by 60sen per litre for petrol products sold.

So hidden tax remains...

Calculation and table of estimated prices can be found at this link: https://goo.gl/cpYiBN

If calculating 9/7 to 15/7 cycle (Thursday to Wednesday - weekends are using Friday prices), the actual retail price for RON95 & RON97 should be RM1.63 and RM1.93 respectively (±1 sen).

If we follow the previous Automatic Pricing Mechanism and Sales Tax Act, the government is allowed to "tax" us higher by 60sen per litre for petrol products sold.

For the past few weeks, the government has applied a hidden tax of approximately 8-9 sen. Thus, I estimate that RON95 and RON97 will be unchanged from last week at RM1.72 and RM2.02 respectively

Calculation and table of estimated prices can be found at this link: https://goo.gl/cpYiBN

If calculating 9/7 to 15/7 cycle (Thursday to Wednesday - weekends are using Friday prices), the actual retail price for RON95 & RON97 should be RM1.63 and RM1.93 respectively (±1 sen).

If we follow the previous Automatic Pricing Mechanism and Sales Tax Act, the government is allowed to "tax" us higher by 60sen per litre for petrol products sold.

For the past few weeks, the government has applied a hidden tax of approximately 8-9 sen. Thus, I estimate that RON95 and RON97 will be unchanged from last week at RM1.72 and RM2.02 respectively

Calculation and table of estimated prices can be found at this link: https://goo.gl/cpYiBN. No guarantees any of the estimates will be correct as the government has been subsidizing the fuel price! The good news is that RON95/Diesel has hit the ceiling and will continue on to be RM2.05 & RM2.15 respectively for the foreseeable future.

If calculating 6/12 to 12/12 cycle (Tuesday to Monday - weekends are using Friday prices), the actual retail price for RON95 & RON97 should be RM2.71 and RM3.01 respectively (±1 sen).

Thus, I estimate that RON97 would go down by 10 sen from last week to RM3.65 (±1 sen).

Note: RON95 will be capped at RM2.05/l & Diesel at RM2.15/l source

2nd Note: Targeted subsidies are on the menu, but it wouldn't be implemented anytime soon. News sources say that the agencies should come up with a proposal within 2 weeks.